Penn State President: University Can Cover Legal Costs

Pennsylvania State University president Rodney Erickson said Sunday a "combination of funds," including insurance coverage, would be used to pay the $60 million fine the NCAA imposed as well as the costs of any litigation brought by victims of former assistant football coach Jerry Sandusky.

On CBS's Face the Nation, Erickson said the university would likely provide a long-term loan to the athletic department from its financial reserves to pay the fine.

On Tuesday, the NCAA imposed the fine and a four-year ban on the football team's postseason play and vacated all the team's victories dating to 1998. The invalidation of those wins strips famed Nittany Lions coach Joe Paterno, who died in January, of the distinction of being the winningest Division I coach.

The NCAA also ordered the university to reduce partial and full football scholarships each year for four years, a penalty expected to severely hurt Penn State's ability to recruit standout players.